Wealthsimple Digital Assets Inc., Canada’s only regulated crypto firm to date, has been given the green light from regulators to go beyond dealing in Bitcoin and Ether and expand into other kinds of cryptocurrencies.
The Ontario Securities Commission (OSC) issued a decision granting Wealthsimple Digital relief from certain registration, prospectus, trade reporting and suitability requirements, allowing the platform to distribute and trade contracts on a broader range of cryptoassets.
The relief, which expires in two years, also imposes certain conditions, including investment limits, as well as disclosure and reporting requirements.
To start, Wealthsimple Digital has added 14 new cryptocurrencies, including Dogecoin, to its roster.
The OSC decision also lifts the previous investment limits for four well-known cryptos: Bitcoin, Ether, Bitcoin Cash and Litecoin.
Instead of imposing investment limits on clients investing in those cryptocurrencies, Wealthsimple Digital must now conduct assessments to establish client loss limits and implement controls to monitor and apply those limits.
The decision comes as the OSC is seeking to bring the emerging crypto sector into the regulated sphere.
Back in March, regulators warned crypto firms to start the process of getting registered. While many firms have heeded that warning, the OSC has now brought three enforcement cases against firms that allegedly ignored the warning.
The OSC decision granting relief to Wealthsimple Digital noted that the decision was based on the particular facts of the firm’s application, and shouldn’t be viewed as precedent.